Planning is key to getting a good deal when buying a summer escape abroad. As the May bank holidays propel us into summer, the prospect of owning a holiday home abroad will excite many Brits.
Why buy a holiday home overseas?
A combination of relatively high UK house prices and the value of sterling – which despite the predictions of some commentators has not reached parity with the euro (where £1 = €1) – might have brought the prospect of buying a summer home back onto the radar.
Where are the best places to buy property for under £100,000?
If you are looking to spend under £100,000 on your holiday home the following countries could be your best options:
- Northern France
France: If you want to stay close to home, a budget of £100,000 could land you a spacious three-bed stone cottage in many rural parts of the northern coastline of France, say in Brittany or Normandy.
Bulgaria: In Bulgaria, where average prices are yet to reach the £100,000, it is entirely possible to pick up a relatively luxury abode for well under this price. Thus, for buyers willing to look further than some of the more obvious destinations such as France and Spain, you will get a lot of property for your pound.
Where are the best places to buy property for under £200,000?
Croatia: In Croatia, were average prices are still a way under the £200,000 mark, there are some real bargains to be had if you steer clear of some of the more obvious parts of the coastline such as Dubrovnik.
Portugal: Meanwhile, house prices in another favoured destination for Britons, Portugal, still offer the UK-based buyer extremely good value when we take currency and house price differentials into account.
How to purchase overseas
Among the experts there are many differing views around what the Brexit reality may mean for the pound and UK house prices. But there are some techniques that you can employ to avoid being caught out by currency market swings, which might impact your affordability.
Be aware or currency fluctuation
With the right guidance there are tools that you can access to help protect a property purchase from exchange rate movements. They might include a forward contract for example, which allows you to secure a prevailing exchange rate for up to two years – especially useful for property transactions seeing as the protracted nature of the process means you could protect against movements in rates between making an offer and settling the purchase. (Note: a forward contract may require a deposit).
Use a foreign exchange expert
We’ve partnered with foreign exchange experts moneycorp to offer readers Telegraph International Money Transfers. The service provides guidance on some of the specialist currency tools you can use, as well as gives you access to great exchange rates which could save you a not insignificant amount on a property seeing as the rates offered by some providers – such as high streets banks - tend to be less competitive. The transfer fees are also waived for Telegraph readers.
Get great exchange rate when transferring your money to buy a holiday home abroad with The Telegraph
moneycorp is a trading name of TTT Moneycorp Limited which is authorised by the Financial Conduct Authority under the Payment Service Regulations 2017 (reference number 308919) for the provision of payment services.
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Information correct at date of publication.